Markets & Finance

Analyst Actions: Yahoo, VistaPrint

Stifel Nicolaus analyst George Askew says Yahoo's (YHOO) fourth quarter was in line with guidance, fueled by aggressive cost cutting and impressive domestic search revenue growth. He notes adjusted EBITDA margins climbed to 39.4% in the fourth quarter, the highest level in eight quarters; $542 million adjusted EBITDA was well above his $518 million estimate and $508 million consensus forecast.

Squali notes while the weak economy and strong U.S. dollar continue to present headwinds to top line growth, VistaPrint's secular growth thesis remains strong, given: its appeal to small/micro businesses as a lower-cost print provider; potential for leverage in opex/capex under slowing growth, strong balance sheet, and free cash flow.

He raises $1.47 fiscal year 2009 (June) EPS estimate to $1.59, $1.79 fiscal year 2010 to $1.92, and $30 price target to $33.